Performance Standby Letter Of Credit Template for Switzerland

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Key Requirements PROMPT example:

Performance Standby Letter Of Credit

"I need a Performance Standby Letter of Credit for a construction project in Geneva, issued by Credit Suisse for EUR 2.5 million, valid until March 15, 2025, with monthly reduction provisions as construction milestones are achieved."

Document background
The Performance Standby Letter of Credit is a crucial financial instrument used to secure performance obligations in commercial transactions. This document type is particularly relevant when one party requires security for another party's performance of contractual obligations. Under Swiss law, which is renowned for its stability and predictability in banking matters, the Performance Standby Letter of Credit provides an independent, irrevocable commitment from a bank to pay upon presentation of specified documents indicating a performance failure. It is commonly used in international trade, construction projects, and large commercial contracts where the beneficiary seeks a reliable, bank-backed security instrument. The document incorporates specific requirements for demand conditions, validity periods, and documentation, often referencing international banking practices while maintaining compliance with Swiss legal requirements.
Suggested Sections

1. Letter Reference Details: Date, reference number, and SWIFT details if applicable

2. Beneficiary Details: Full name and address of the party in whose favor the SBLC is issued

3. Applicant Details: Full name and address of the party requesting the SBLC

4. Issuing Bank Details: Full name, address and contact information of the issuing bank

5. Transaction Reference: Reference to the underlying contract or obligation being secured

6. SBLC Amount and Currency: The maximum amount available under the SBLC and currency denomination

7. Bank's Undertaking: Clear statement of the bank's independent payment obligation and commitment

8. Drawing Conditions: Specific conditions and required documentation for demanding payment

9. Expiry Details: Expiry date and place, including any auto-extension clauses

10. Form of Demand: Exact format and content requirements for making a compliant demand

11. Presentation Location: Where and how demands must be presented

12. Governing Law Declaration: Statement that Swiss law governs the SBLC

13. Applicable Rules: Reference to ISP98 or other applicable rules

Optional Sections

1. Transferability Clause: Include when the SBLC needs to be transferable to other beneficiaries

2. Multiple Drawing Clause: Include when partial drawings are to be permitted

3. Language of Documents: Include when documents may be presented in multiple languages

4. Bank Charges: Include when there's a need to specify responsibility for bank charges

5. Force Majeure Clause: Include when specific force majeure provisions are required beyond standard rules

6. Assignment of Proceeds: Include when assignment of proceeds needs to be explicitly permitted or prohibited

7. Electronic Presentation: Include when electronic presentation of documents is permitted

Suggested Schedules

1. Form of Demand: Template for the beneficiary's written demand for payment

2. Required Documents: List and samples of any additional documents required for drawing

3. Performance Statement Format: Template for the statement declaring applicant's non-performance

4. Authentication Instructions: Details of how documents should be authenticated or legalized

5. Contact Details Schedule: Complete contact information for all relevant parties and departments

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Construction

Infrastructure

Engineering

Manufacturing

Energy

International Trade

Telecommunications

Mining

Oil and Gas

Real Estate Development

Renewable Energy

Defense Contracting

Technology Services

Industrial Projects

Relevant Teams

Legal

Finance

Treasury

Risk Management

Commercial Operations

Project Management

Procurement

Trade Finance

Contract Administration

Corporate Banking

International Business

Relevant Roles

Chief Financial Officer

Treasury Manager

Trade Finance Manager

Project Manager

Contract Manager

Risk Manager

Commercial Director

Finance Director

Legal Counsel

Banking Relationship Manager

Procurement Manager

Credit Risk Officer

Corporate Finance Manager

Business Development Director

Operations Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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